Trading day running commentary, page-552

The EV revolution is real.

With two billion vehicles to be replaced by 2050 the EV market could be up to 100 trillion dollars for the vehicles alone, plus all the associated infrastructure and fueling stations around the world.

I can see why it might be in China’s national interest to not only participate in this revolution, but to control it.

Successful participants will need to be able to source the raw materials, that’s the bottom line, if you can’t do that your not in the game.

The current vehicle manufacturers are only too aware of this and would have already commenced jockeying for position years ago.

China already controls the rare earths market which is essential for making the high powered magnets which is something Australia also has ample supplies of, as well as nickel and lithium.

The Chinese want as much nickel as they can get as does Tesla and many other car makers including Ford.

It makes me think the ex Vale executive employed to do the nickel negotiation for Tesla is there for a reason. The fact that Vale has retained first right of refusal to purchase Nickel from CTM could mean that CTM’s future has been preordained, we just haven’t been told yet. Is it set to go to Tesla or will it go to China?

CTM is one of the largest emerging clean, low cost, high quality sulphide nickel resources on the planet and with a market cap of just $235m CTM has got to be a prime target for take over.